page contents Mortgage News Digest: December 2010

Tuesday, December 28, 2010

FHA Condo Approval Expiration Dates

12/28-2010 FHA Announces New Staggered Dates for Condo Approval Expiration

• Approved 1972-1980: Expire 12/31/10

• Approved 1981-1985: Expire 12/31/10

• Approved 1986-1990: Expire 05/31/11

• Approved 1991-1995: Expire 07/31/11

• Approved 1996-2000: Expire 08/31/11

• Approved 2001-2005: Expire 09/30/11

• Approved 2006-2008 (Sept): Expire 03/31/11

Click here: https://entp.hud.gov/idapp/html/condo1.cfm to look up the expiration date of the FHA approval of a specific condominium project.

The requirements and process for recertification are set forth in HUD Mortgagee Letter 2009-46 B. There are two approval process options: the HUD Review and Approval Process (HRAP) and the Direct Endorsement Lender Review and Approval Process (DELRAP), which can only be used by lenders who have unconditional Direct Endorsement authority from the FHA and staff with knowledge and expertise in reviewing and approving condominium projects.

12/27/2010 FHA Mortgagee Review Board Censures 2 Lenders - Mortgage Originator

HUD Fines WR Starkey, Seeks $750,000 Reimbursement

Its Mortgagee Review Board has fined WR Starkey Mortgage $223,000 for violations of Federal Housing Administration lending requirements, according to the Department of Housing and Urban Development.

12/27/2010 - FHA Takes Action against Cambridge Home Capital

In the new era following the subprime-lending disaster most mortgage lenders are looking more carefully at the implementation of their underwriting and quality control criteria including the Federal Housing Administration. Citing "serious" underwriting standard violations the FHA Mortgagee Review Board has permanently withdrawn FHA approval of Cambridge Home Capital LLC and is also seeking a monetary penalty of $182,000.

FHFA's Backwards Looks at Rates Shows how low Rates Went

Washington, DC – The Federal Housing Finance Agency today reported that the

National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some ARM contracts, was 4.42 percent based on loans closed in November. This is a decrease of 0.07 percent from the previous month. This Contract Rate series can be found at http://www.fhfa.gov/Default.aspx?Page=251

FTC Launches Website and Blog for National Consumer Protection Week 2011.

On December 21, the Federal Trade Commission (FTC) announced the launch of a website and blog for National Consumer Protection Week 2011, which will be held March 6-12. The annual event is hosted by the FTC and approximately 30 other government agencies, consumer groups, and national organizations. The new National Consumer Protection Week website, which can be found at www.ncpw.gov, offers information and resources to help consumers protect their privacy interests, manage credit and debt, avoid identity theft, understand mortgages, and recognize frauds and scams.

Wednesday, December 1, 2010

Loan Officer Selling: I HATE Cold-Calling

My Marketing Plan - Week 2 - Is there a way I can avoid cold calling?

You know the drill.  You pick up the phone and start calling agents, CPAs or builders. You don't get through.  You get voicemail.  Or, worse, you get your prospect on the phone and they don't want to talk to you.  "Tom, thanks for the call.  But I already have a loan officer.  (Click)."  And that's a civil one.  A few rejections like that, and I start to question what I am doing.  In my mind, before I even dial I am getting rejected. 

Boy.  That's what I want to do today.... NOT!

Triggering Call Reluctance

What I just did was trigger my own call reluctance.  Now I am afraid or unwilling to make further calls, even though I know that this is the ONLY way I will start creating new relationships.  We are told we HAVE to push out of our comfort zone.  Most people I know, including myself, don't want to do this and will avoid it.  The result is predictable - sales failure.

Comfort Zone Selling

The key to pushing out of your comfort zone is to take small steps to creating new comfort zones around your prospects.  For me the first step in getting over call reluctance with new prospects is to NOT MAKE COLD CALLS.  Instead, I make "follow-up" calls.  I send my prospect a very short letter saying I think I have something to offer them.  Then I tell them that I will follow up with them within the next couple of weeks. 

PRESTO!  No cold-calls!  When I pick up the phone and call to try and get a face to face meeting, I am following up on the letter I sent. 

The intro letter is just the first in a series of between 6 and 10 letters I'll send designed to allow me to follow up.  

The next step?  Making the calls! 

These are part of the value package I have at my use in The Loan Officer's Practical Guide to Marketing